U.S. DOLLAR INDEX (DXU6)
The DX opened lower at 85.54 as pressure from proposed rate increases by the BoJ and ECB and a larger increase in Jobless Claims sent the DX to a morning Lo of 85.32. A lack of conviction by JY and EC traders touched off a round of selling that saw the DX rebound to a morning Hi of 85.72, before drifting to 85.65 as we enter the afternoon session.

 
CANADIAN DOLLAR (CDU6)
The CD opened higher at .8838, slid to a morning Lo of .8833 and rose to a morning Hi of .8867, before the BoC released its Monetary Policy Report that lowered economic growth forecasts for 07' & 08' and saw no need to raise rates at this time. Prices retraced to .8842, but rebounded to our initial Resistance level of .8856 as we begin afternoon trading.

 
BRITISH POUND (BPU6)
The BP opened higher at 1.8438 and rose to a morning Hi of 1.8499 as traders discount the EC and JY rate increase and seek a 'safer haven' play. Prices retraced to a morning Lo of 1.8410, before bouncing to 1.8423 as we head into the afternoon session.

 
EURO-CURRENCY (ECU6)
The BP opened higher at 1.8438 and rose to a morning Hi of 1.8499 as traders discount the EC and JY rate increase and seek a 'safer haven' play. Prices retraced to a morning Lo of 1.8410, before bouncing to 1.8423 as we head into the afternoon session.

 
JAPANESE YEN (JYU6)
The JY opened higher at .8755 as policymakers begin a two-day meeting that should result in the much anticipated 'rate increase' Friday. Prices rose to a morning Hi of .8770, before retracing to a morning LO of .8733, as traders sell the 'rumor' ahead of the announcment. The JY bounced to .8745 as we enter the closing half of trading.